Lakeside Steel Inc. says president and CEO Vic Alboini is being investigated by securities regulators in connection with his role as CEO of investment dealer Northern Securities Inc.

Mr. Alboini and other executives at the subsidiary of Northern Financial Corp. face allegations by the Investment Industry Regulatory Organization of Canada that they failed to create and maintain a culture of regulatory compliance.

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Mr. Alboini is also accused of engaging in a trading practice enabling a related-party client to obtain unapproved access to credit.

Northern Financial has denied the allegations.

“Northern is particularly disappointed with the notice (of a hearing) given that Northern considers a majority of the matters as having been settled with IIROC in an earlier agreement,” the company said in a recent statement.

The hearing is set for May 7, 2012.

Lakeside, a maker of steel pipe and tubing, has operations in Welland, Ont., and Corpus Christi, Texas, and three facilities under construction in Thomasville, Alabama.

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